City of Toledo Announces Exhaustive Energy Conservation and Facilities Improvement Project

Toledo Mayor Wade Kapszukiewicz today announced that the city would enter into an energy savings performance contract with Leopardo Companies, Inc. to provide comprehensive energy management and infrastructure-related capital improvement services, reducing the city’s utility and operating costs on a guaranteed performance contracting basis pursuant to ORC 717.02.

The city owns and operates 137 buildings and an initial assessment of the buildings determined that a majority are outdated, in part obsolete, and in need of significant repairs and improvements. The improvements will generate significant operational and energy savings and efficiencies.

“This is a very large scope project that the city cannot implement itself, so in March 2019, the Public Service Department issued a request for proposals seeking vendors who could help complete the upgrades while guaranteeing energy savings,” said Public Service Director Paul Rasmusson. “Eight buildings were selected for the initial project based on age, structure, and needs.”

The eight buildings are:

• Transportation Building, 110 North Westwood Ave.
• Frederick Douglass Community Center, 1001 Indiana Ave.
• Toledo Safety Building, 525 North Erie St.
• Alarms Building, 550 North Erie St.
• Fire Station 1, 545 North Huron St.
• Toledo Municipal Court, 555 North Erie St.
• Sewer and Drainage Services, 4030 Creekside Ave.
• Water Distribution, 401 South Erie St.

Leopardo will serve as the general contractor to implement the improvements. The company has performed $124 million in municipal work during the past five years. Its design and engineering team members have experience with performance contracting totaling more than 130 years and nearly $800 million in project volume. Leopardo has worked with municipalities such as Middletown, Ohio; Hammond, Ind.; and Aurora, Il.

Pending Toledo City Council approval, the city will authorize a letter of intent to proceed with entering into a “Guaranteed Savings Performance Contract,” with Leopardo for $292,000. The Guaranteed Savings Performance Contract means the city would not pay that amount if the administration chooses to proceed with the project. The total cost of the upgrades and repairs at the eight buildings is not yet know. The $292,000, if authorized, would be used to supplement the upgrades and repairs costs for the eight buildings.

“The guaranteed savings performance contract guarantees the energy savings and improvements are enough to cover the costs of the project,” Mr. Rasmusson said. “The company would be paid the $292,000 only if the city decides to not proceed with the overall performance contract. If we do proceed – which is our intention – that amount gets rolled into the total project cost.”

The guaranteed savings this project generates will allow the city to make the much-needed building infrastructure improvements without requiring the city to come up with any capital or new money. That strengthens the city’s financial position and reduces the burden on transfers from the capital improvement fund.